Economic development of an LIC/NEE — Nigeria

AQA's NEE case study options include India, Nigeria and Brazil. Nigeria is the most-taught choice — Africa's largest economy and most populous country.

Location and importance

• West Africa, on the Gulf of Guinea. Borders Niger (north), Chad (east), Cameroon (east), Benin (west).
• Population ~225 million (2024), Africa's largest, projected 400 m by 2050 (UN).
• GDP ~$477 bn — largest in Africa.
• Regional importance — leader in ECOWAS, host of the African Union, Nollywood (world's 2nd-largest film industry by output).
• Global importance — 6th-largest oil exporter; supplies 25 % of US light crude in early 2010s.
• Cultural importance — football powerhouse (Super Eagles), music (Afrobeats — Burna Boy, Wizkid).

Wider context

• Politically — federal republic since independence from Britain in 1960. Civil war 1967–70 (Biafra). Democratic since 1999, although insurgencies (Boko Haram in the NE since 2009) continue.
• Social — over 250 ethnic groups; major tensions Hausa-Fulani (north), Yoruba (south-west), Igbo (south-east). Roughly half Muslim, half Christian.
• Environmental — south is rainforest (Niger Delta), middle belt savanna, far north Sahel (encroaching desertification).

Changing industrial structure

In 1960, ~70 % of workers were in agriculture. By 2024:

• Agriculture ~25 %
• Industry ~30 % (oil, manufacturing, construction)
• Services ~45 % (banking, telecoms, Nollywood)

This is the classic NEE pattern as economies diversify. Nigeria's manufacturing is growing — cement (Dangote, Africa's biggest), food processing, textiles.

Role of TNCs — the case of Shell

Shell has operated in Nigeria's Niger Delta since 1958. Advantages:

• Investment — billions of dollars; pays ~70 % of government revenue indirectly via taxes.
• Jobs — 6 000 direct, 200 000 indirect.
• Infrastructure — roads, schools, training.

Disadvantages:

• Oil spills — 1.5 million tonnes since 1958 (UNEP). Ogoniland clean-up will take 30 years.
• Gas flaring — Nigeria flares more gas than any other country except Russia; CO₂ and respiratory disease.
• Profit leakage — most profits go to Anglo-Dutch shareholders.
• Conflict — Movement for the Emancipation of the Niger Delta (MEND) has bombed pipelines.

Aid and political relationships

• Aid — UK gave £150 m in 2023 (largely health, education, conflict response).
• Trade — China is now Nigeria's largest trade partner (overtaking US in 2017); China-built rail line Lagos–Ibadan (2021).
• Political — Commonwealth member, ECOWAS leader.

Environmental impacts

• Niger Delta oil pollution — fishing collapsed in some communities.
• Deforestation — 96 % of original rainforest gone; logging + farming.
• Desertification — Sahel pushing south at ~0.6 km/year.
• Urban pollution — Lagos air quality among worst in Africa.

Quality of life — improving but uneven

• Life expectancy rose from ~46 (1990) to 53 (2022), still low.
• Infant mortality halved 2000–2020.
• HDI 0.535 (medium development).
• But over 80 m Nigerians live below $1.90/day; 17 % of the world's child marriages.
• Lagos vs north — Lagos GDP per capita ~$4 000 vs north ~$1 200.

Examiner tips

• Always cite named TNCs (Shell, Dangote, MTN) and figures (1.5 m tonnes oil spilled).
• For 9-mark questions, balance economic gain (GDP, jobs) against environmental and social cost (Niger Delta pollution, inequality).
• Diversification is the key concept — Nigeria's vulnerability to oil-price shocks (2014–16) makes the case for moving beyond extraction.